The Integrated Goods and Services Tax Act, 2017

(1) This Act may be called the Integrated Goods andServices Tax Act, 2017. (2) It shall extend to the whole of India except the State of Jammu and Kashmir*. (3) It shall come into force on such date1as the Central Government may, by notification in theOfficial Gazette, appoint: Provided that different dates may be appointed for different provisions of this Act and any referencein any such provision to the commencement of this Act shall be construed as a reference to the cominginto force of that provision.

In this Act, unless the context otherwise requires, -- (1) "Central Goods and Services Tax Act" means the Central Goods and Services Tax Act, 2017; (2) "central tax" means the tax levied and collected under the Central Goods and Services TaxAct; (3) "continuous journey" means a journey for which a single or more than one ticket or invoice isissued at the same time, either by a single supplier of service or through an agent acting on behalf ofmore than one supplier of service, and which involves no stopover between any of the legs of thejourney for which one or more separate tickets or invoices are issued. Explanation.--For the purposes of this clause, the term stopover means a place where apassenger can disembark either to transfer to another conveyance or break his journey for a certainperiod in order to resume it at a later point of time; (4) "customs frontiers of India" means the limits of a customs area as defined in section 2 of theCustoms Act, 1962 (52 of 1962); (5) "export of goods" with its grammatical variations and cognate expressions, means takinggoods out of India to a place outside India; (6) "export of services" means the supply of any service when, -- (i) the supplier of service is located in India; (ii) the recipient of service is located outside India; (iii) the place of supply of service is outside India; (iv) the payment for such service has been received by the supplier of service in convertibleforeign exchange; 1[or in Indian rupees wherever permitted by the Reserve Bank of India]; and (v) the supplier of service and the recipient of service are not merely establishments of adistinct person in accordance with Explanation 1 in section 8; (7) "fixed establishment" means a place (other than the registered place of business) which ischaracterised by a sufficient degree of permanence and suitable structure in terms of human andtechnical resources to supply services or to receive and use services for its own needs; (8) "Goods and Services Tax (Compensation to States) Act" means the Goods and Services Tax(Compensation to States) Act, 2017; (9) "Government" means the Central Government; (10) "import of goods" with its grammatical variations and cognate expressions, means bringinggoods into India from a place outside India; (11) "import of services" means the supply of any service, where-- (i) the supplier of service is located outside India; (ii) the recipient of service is located in India; and (iii) the place of supply of service is in India; (12) "integrated tax" means the integrated goods and services tax levied under this Act; (13) "intermediary" means a broker, an agent or any other person, by whatever name called, whoarranges or facilitates the supply of goods or services or both, or securities, between two or morepersons, but does not include a person who supplies such goods or services or both or securities on hisown account; (14) "location of the recipient of services" means,-- (a) where a supply is received at a place of business for which the registration has beenobtained, the location of such place of business; (b) where a supply is received at a place other than the place of business for whichregistration has been obtained (a fixed establishment elsewhere), the location of such fixedestablishment; (c) where a supply is received at more than one establishment, whether the place of businessor fixed establishment, the location of the establishment most directly concerned with the receiptof the supply; and (d) in absence of such places, the location of the usual place of residence of the recipient; (15) "location of the supplier of services" means,-- (a) where a supply is made from a place of business for which the registration has beenobtained, the location of such place of business; (b) where a supply is made from a place other than the place of business for whichregistration has been obtained (a fixed establishment elsewhere), the location of such fixedestablishment; (c) where a supply is made from more than one establishment, whether the place of businessor fixed establishment, the location of the establishment most directly concerned with theprovision of the supply; and (d) in absence of such places, the location of the usual place of residence of the supplier; (16) "non-taxable online recipient" means any Government, local authority, governmentalauthority, an individual or any other person not registered and receiving online information anddatabase access or retrieval services in relation to any purpose other than commerce, industry or anyother business or profession, located in taxable territory. Explanation.--For the purposes of this clause, the expression governmental authority means an authority or a board or any other body,-- (i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with ninety per cent. or more participation by way of equity or control, to carry out any function entrusted 2 [to a Panchayat under article 243G or] to a municipality under article 243W of the Constitution; (17) "online information and database access or retrieval services" means services whose deliveryis mediated by information technology over the internet or an electronic network and the nature ofwhich renders their supply essentially automated and involving minimal human intervention andimpossible to ensure in the absence of information technology and includes electronic services suchas,-- (i) advertising on the internet; (ii) providing cloud services; (iii) provision of e-books, movie, music, software and other intangibles throughtelecommunication networks or internet; (iv) providing data or information, retrievable or otherwise, to any person in electronic formthrough a computer network; (v) online supplies of digital content (movies, television shows, music and the like); (vi) digital data storage; and (vii) online gaming; (18) "output tax", in relation to a taxable person, means the integrated tax chargeable under thisAct on taxable supply of goods or services or both made by him or by his agent but excludes taxpayable by him on reverse charge basis; (19) "Special Economic Zone" shall have the same meaning as assigned to it in clause (za) ofsection 2 of the Special Economic Zones Act, 2005 (28 of 2005); (20) "Special Economic Zone developer" shall have the same meaning as assigned to it inclause (g) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005) and includes anAuthority as defined in clause (d) and a Co-Developer as defined in clause (f) of section 2 of the saidAct; (21) "supply" shall have the same meaning as assigned to it in section 7 of the Central Goods andServices Tax Act; (22) "taxable territory" means the territory to which the provisions of this Act apply; (23) "zero-rated supply" shall have the meaning assigned to it in section 16; (24) words and expressions used and not defined in this Act but defined in the Central Goods andServices Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax(Compensation to States) Act shall have the same meaning as assigned to them in those Acts; (25) any reference in this Act to a law which is not in force in the State of Jammu and Kashmir*,shall, in relation to that State be construed as a reference to the corresponding law, if any, in force inthat State.

The Board may appoint such central tax officers as it thinks fit forexercising the powers under this Act.

Without prejudice to the provisions of this Act, the officers appointed under the StateGoods and Services Tax Act or the Union Territory Goods and Services Tax Act are authorised to be theproper officers for the purposes of this Act, subject to such exceptions and conditions as the Governmentshall, on the recommendations of the Council, by notification, specify.

(1) Subject to the provisions of sub-section (2), there shall be levied a taxcalled the integrated goods and services tax on all inter-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 of theCentral Goods and Services Tax Act and at such rates, not exceeding forty per cent., as may be notified bythe Government on the recommendations of the Council and collected in such manner as may beprescribed and shall be paid by the taxable person: Provided that the integrated tax on goods imported into India shall be levied and collected inaccordance with the provisions of section 3 of the Customs Tariff Act, 1975 (51 of 1975) on the value asdetermined under the said Act at the point when duties of customs are levied on the said goods undersection 12 of the Customs Act, 1962 (52 of 1962). (2) The integrated tax on the supply of petroleum crude, high speed diesel, motor spirit (commonlyknown as petrol), natural gas and aviation turbine fuel shall be levied with effect from such date as may benotified by the Government on the recommendations of the Council. (3) The Government may, on the recommendations of the Council, by notification, specify categoriesof supply of goods or services or both, the tax on which shall be paid on reverse charge basis by therecipient of such goods or services or both and all the provisions of this Act shall apply to such recipientas if he is the person liable for paying the tax in relation to the supply of such goods or services or both. 1[(4) The Government may, on the recommendations of the Council, by notification, specify a class of registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply of goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is theperson liable for paying the tax in relation to such supply of goods or services or both.] (5) The Government may, on the recommendations of the Council, by notification, specify categoriesof services, the tax on inter-State supplies of which shall be paid by the electronic commerce operator ifsuch services are supplied through it, and all the provisions of this Act shall apply to such electroniccommerce operator as if he is the supplier liable for paying the tax in relation to the supply of suchservices: Provided that where an electronic commerce operator does not have a physical presence in the taxableterritory, any person representing such electronic commerce operator for any purpose in the taxableterritory shall be liable to pay tax: Provided further that where an electronic commerce operator does not have a physical presence in thetaxable territory and also does not have a representative in the said territory, such electronic commerceoperator shall appoint a person in the taxable territory for the purpose of paying tax and such person shallbe liable to pay tax.